INTRODUCTION

Perhaps the most distinctive skill of professional marketers is their

ability to create, maintain, protect and enhance brands. Branding is the art
and cornerstone of marketing. The American Marketing Association defines
a brand as a name, term, sign, symbol or design, or a combination of them,
intended to identify the goods or services of one seller or group of sellers
and to differentiate them from those of competitors. Thus a brand identifies
the seller or maker.

“What distinguishes a brand from its unbranded commodity

counterparts is the consumer’s perceptions and feelings about the product’s
attributes and how they perform. Ultimately, a brand resides in the minds of
consumers. A brand can be better positioned by associating its name with
desirable benefits.

A brand is much more than a name, logo, colours, a tagline, or

symbol. These are marketing tools tactics. A brand is essentially a
marketer’s promise to deliver a specific set of feature, benefits and services
consistently to the buyers. The marketer must establish a mission for the
brand and a vision of what the brand must be and do.

Brand bonding occurs when customers experience the company as

delivering on its benefit promise. The fact is that brands are not built by
advertising but by the brand experience. Brands vary in the amount of power
and value they have in the market place. At one extreme are brands that are

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not known by must buyers. Then there are brands for which buyers have a
fairly high degree of brand awareness. Beyond this are brands with a high
degree of brand acceptability.

We define brand equity as the positive differential effect that knowing

the brand name has on customer response to the product or service. Brand
equity results in customers showing a preference for one product over
another when they are basically identical. The extent to which customers
are willing to pay more for the particular brand is a measure of brand equity.

A brand needs to be carefully managed so that its equity does not

depreciate. This requires maintaining or improving brand awareness,
perceived quality and functionality and positive associations. These tasks
require continuous R & D investment, skilful advertising and excellent trade
and consumer service.

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 NEED FOR THE STUDY
The motive of any company is to generally acquire larger market
share high percentage of sales the Industry; this could be only achieved by
building a higher percentage of brand loyal customers.

Any company can survive through there is a stiff computational the

market if it has brand loyal customers. Today many major companies in the
market try to maintain and improve their branded equity. With out creating
proper brand awareness they can not build brand image.

Strong brands help build the corporate image and also by making it
easier for the companies launch new brands. Today brands are treated as
major enduring assets of a company – more over brand equity are major
contributor to customer equity. This all can happen only there is proper
brand awareness.

The lights four wheeler industries have been expanding rapidly are
gone the day when possessing a small and mix-size cars were seen as a
luxury. Now days it is viewed as a mere necessity.

Customer relationship management and data mining are critical

differentials that enable competitive edge for firms focused on increasing
customer market share.

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 Though investment in marketing, sales and service innovation can be
constrained due to economic and cultural considerations, the initial analysis
of the study indicates common European consumer apparel sites enable
higher content depth, navigational context and help, consumer
communication, and commerce efficiency.

However, the study concurrently indicates lower customer

customization and mining, lifestyle connection and marketing, and consumer

Community interaction, on the sites:

The analysis, conducted as an assignment by adult students at a

leading European university, contributes insight into the limitation of
customer relationship management and data mining investment on the Web.
This study will benefit practitioners and researchers who continue to
evaluate innovation in technology on the European Web.

Keywords:
Apparel industry, business-to-consumer (b2c), e-commerce in Europe,
customer relationship management (CRM), data mining on the Web,
European Union.

Background The World Wide Web is an important consideration in

the growth of business firms in America.

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 From its inception, the Web has initiated unprecedented change in
enabling improved channels of business with customers.

OBJECTIVES

The study has been conducted with the following objectives:

1. To know how consumer welfare made customer to purchase product

Maruti.
2. What factors and variables of brand influence them to purchase.
3. To know what position does the brand has in the minds of customers.
4. To know how they became aware of the brand Maruti four wheelers.
5. To know level of satisfaction about the consumer welfare offered by
Maruti.
6. To find out the market potential for Maruti four wheelers.
7. To know how maintain and improve brand awareness build brand
loyalty

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 METHODOLOGY OF STUDY

RESEARCH METHODOLOGY

SOURCES OF DATA:

The data has been collected from both primary and secondary sources,
to get information regarding the organization and products

PRIMARY DATA:

Primary data has been collected through questionnaires. The

questionnaire was mostly related to the brand awareness towards Maruti
Products ZEN of the customers on different features such as the model,
price, effectiveness of the brand etc. provided by Varun Motors Ltd.

SECONDARY DATA:
Secondary data has been taken from below sources:

1. Reports
2. Pamphlets
3. Advertisement
4. Customer database

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5. News papers
6. Internet

SAMPLING:

Out of few lakes of Maruti customers spread all over India, the
customers of Varun Motors Ltd., Visakhapatnam city only are taken as
target population for the study.

SAMPLE SIZE:

The sample size of 100 is selected from the database of the company.
The study requires on in depth survey and keen observation in a collecting
data regarding the brand awareness levels of Maruti customers.

SAMPLING TECHNIQUE:

Only simple random sampling technique is adopted in selection the

sample. In this technique, each and every unit of the population has on
equal opportunity of being selected in the sample.

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DATA COLLECTION PROCESS:

Observation
Primary Data

Questionnaire

Data

Inside the News letters Documents

Organisations

Secondary Data
Outside the Libraries
Organisation Magazines

Based on needs and objectives, types of data required for study and
other of data are identified.

Data was collected with the help of questionnaires.

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 LIMITATIONS OF STUDY

Even though the project has been done with outmost care, it suffers
from the following limitations.

1. Due to lack of time, customers could not be contacted.

2. The study has been restricted to Srikakulam city only.
3. As the project is a simple sample study and is confined to 100
customers only, if May or may not pictures the entire customer
feelings.

The awareness levels of the customers may change from time to time
and so there is a possibility of changes in the research results.

Few customers refused to respond or could not respond appropriately due to:
 Lack of time
 Ignorance etc.,

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PROFILE OF INDIAN FOUR WHEELER INDUSTRY

ICRA Sect oral Review 2006:

The 4W industry in India has not quite matched up to the performance

of its counterparts in other parts of the world. The primary reason for this
has been the all-pervasive regulatory atmosphere prevailing till the opening
up of the industry in the mid-1990s. The various layers of legislative Acts
sheltered the industry from external competition for a long time. Moreover,
the industry was considered low-priority as cars were thought of as
"unaffordable luxury".

Initially in the post-liberalization period, the automotive sector,

especially the passenger car segment, saw a boom. The buoyancy in the
sector was derived primarily from economic vibrancy, changes in
Government policies, increase in purchasing power (especially of the upper
middle class), improvement in life styles, and availability of car finance. The
passenger car industry was finally deregulated in 1993, and many
companies, both Indian and foreign (like Daewoo, Ford, General Motors,
and DaimlerChrysler), entered the market. However, the smooth sailing was
suddenly disrupted in the last quarter of FY1996. The automobile industry,
which contributed substantially to industrial growth in FY1996, failed to
maintain the same momentum between FY1997 and FY1999.

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 The overall slowdown in the economy and the resultant slowdown in
industrial production, political uncertainty and inadequate infrastructure
development were some of the factors responsible for the slowdown
experienced by the automobile industry. In FY2000, the sector experienced a
turnaround, posted positive growth rates and witnessed the launch of many
new models. But the spectacular growth in FY2000 was followed by a
decline in FY2001 and only a marginal growth of 0.5% in FY2002.

However, since FY2003, industry sales have increased at a 3-year

CAGR of 17.4% to 1.14 million in FY2006. Although there was a slowdown
in FY2006, after the high growth in FY2004-05, the recent high growth has
been on the strength of an increase in the disposable income of middle-
income salaried people, release of pent-up demand, and easy availability of
credit.

Low Penetration, but Rising Share of World Production:

Although the Indian automobile industry has come a long way since
the deregulation in 1993, India does not rank well among its global peers in
many respects, viz., the contribution of the sector to industrial output,
number of cars per person, employment by the sector as a percentage of
industrial employment, number of months' income required to purchase a
car, and penetration of cars.

However, the major car manufacturers worldwide consider India a good

potential market and they foresee a large future demand here. As can be seen
from the table below, India is now a major global producer of cars, with
India's share in world production increasing from 1.6% in 2000 to 2.7% in
2005.

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Two things that stunted growth of the Indian automobile industry in the past
have been low demand and lack of vision on the part of the original
equipment manufacturers (OEMs). However, the demand has picked up after
the liberalization of the regulatory environment, and global OEMs who
enjoy scale economies both in terms of manufacturing and research and
development (R&D) entered the Indian market. This has resulted in a
significant shift in the way business is conducted by suppliers, assemblers
and marketers.

Spending on Vehicles and Transport

India's private final consumption expenditure (PFCE) on transport

was estimated at around Rs.3, 124 billion in FY2005, accounting for around
16.5% of total PFCE. This comprises three categories: personal transport
equipment, operation of personal transport equipment, and purchase of
transport services.

In terms of PFCE, the share of transport in total PFCE has witnessed

rapid growth since the mid-1980s. By comparison, the share remained at
around 3-5% till the mid-1980s.

The motor vehicles sector is also an important source of central excise

duties. Central excise duty collections from motor vehicles were Rs.54.70
billion during FY2005, accounting for 6% of central excise duty collections.

Taxes on vehicles, passengers and goods also form an important component

of states' tax collections, and formed 8.7% of states' own tax collections
during FY2005.

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Demand Characteristics:

Passenger Car:

In developed markets, engine capacity and wheel-base are the bases of

segmentation of passenger cars: price does playa role but only up to a point.
Since affordability is the most important demand driver in India, the
domestic car market has until now been segmented on the basis of vehicle
price. Price-based competition takes place in a continuum rather than in
segments since nearly all the models are launched in multiple versions at
different price points. As a result, a higher-end variant may compete with a
lower-end variant of a car in a segment above it.

MUVs:
The MUV segment consists of vehicles that are suited to both rural and
urban areas. In rural areas where the roads are usually bad, these vehicles are
used as goods carriers and also for public transportation. Northern and
Western India account for nearly two-thirds of the demand for MUV.
Specifically, in States like Rajasthan, Madhya Pradesh, Uttar Pradesh and
Maharashtra, the demand for MUVs is the largest. There are three segments
of buyers for MUVs: the private market, Government, and the Defence.
Until the 1990s, the Government and Defence segments accounted for the
largest share of the market. The reduction in Government and defence
spending since the 1990s has substantially reduced sales to these two
segments. This has pushed private sector purchases into greater prominence.

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 There are three sub-segments of the UV / MUV segment: the hard-
top, soft-top and pick-up. The hard-top version consists of the higher-end
Sports Utility Vehicles (SUVs) that have been present in the Indian markets
since FY1999. Following the success of the higher-end SUVs, the share of
the hard top segment in total MUV sales has registered an increase. Soft-top
MUVs, which are largely dependent on sales in the rural and semi-urban
markets where the vehicles serve as modes of mass transportation (maxi
taxi), have witnessed a contraction in volumes in recent years. The declining
share of the soft-top sub-segment is attributable largely to the increasing
acceptance of SUVs as an alternative to soft-tops (and even higher end-cars).
Those apart, soft-top sales have also been affected by a decline in rural
income, increase in sales tax in some states, increase in diesel prices,
enforcement of strict emission control norms, and restraints on the issue of
licences to use soft-top vehicles as rural taxis

.Demand Structure:

When the industry was deregulated in 1993, the global carmakers

chose to operate in the high price-high value segment. However, the strategy
did not work as the market for premium and luxury vehicles in India was not
large enough. MUL was entrenched in the low price-low value segment, and
given its scale economies, it could not be dislodged. In the latter half of the
1990s, foreign car manufacturers changed their strategy. It was still difficult
to remove MUL from its market leadership in the dominant low price-low
value segment as scale economies formed the basis of competition in this
segment. Thus, the global players changed the price-value equation by

offering superior value at a price that was still higher than that of the
Maruti 800 and Omni, but significantly lower than of the cars in the high

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price-high value segment. The process gained momentum in FY2000 when
the growth in the car market was led by the Compact segment.

Although the compact segment now accounts for 65% of domestic

sales of passenger cars, in recent years, the mid-size segment has captured a
rising share of the market, and since 2004, sales in the mid-size segment
have exceeded sales in the mini-segment. The growth in this segment has
been led by new launches, lower prices, and the significant success of four
models - MUL's Esteem, Honda's City, HMIL's Accent, and TML's Indigo.
Introduction of stripped down versions of the vehicles in the Mid-size
segment, attractive pricing by manufacturers (who also offer sales
incentives) coupled with lower rate of interests and easy availability of
finance have facilitated the growth of this segment.

Low Penetration Levels:

Although India's 4W sales have increased in recent years, penetration

levels are low at around 0.9%. Till the last decode, the industry was
considered low priority as cars were thought of as 'unaffordable luxury', and
treated as such through Government policies.

Although reduction in excise duties, favourable Government policies,

and lower prices have resulted in significant increase in penetration, India's
passenger car penetration is low by global standards-1.3% in Chino, 59% in
EU, and 81% in the US. Estimates from Notional Sample Survey 58th
Round (2002) indicates that ownership of four-wheelers (car or jeep) is
restricted to about 4.4% of urban households, and 0.6% of rural households.

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 During 2002-03, ownership of cars/jeeps was restricted to around 0.9
million households in rural areas, and 2.57 million households in urban
areas. Car penetration is high in Chandigarh, Delhi, Goa, and Kerala.
However, penetration is extremely low in the eastern states of Bihar, West
Bengal, Orissa; and central states such as Madhya Pradesh and Chattisgarh.

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 Company over View of Maruti Udyog Limited

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of

Japan, has been the leader of the Indian car market for about two decades.
Its manufacturing plant, located some 25 KM south of New Delhi in
Gurgaon, has an installed capacity of 3, 50,000 units per annum, with a
capability to produce about half a million vehicles.

The company has a portfolio o f10 brands, including Maruti 800,

Omni, premium small car Zen, international brands Alto and Wagon, off-
roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa and
Luxury SUV Grand Vitara XL7.

At the end of 2003-04, Maruti had a market share of over 55 per cent
of the Indian passenger car market. The company sold over 4, 20,000
passenger cars in the domestic market in 2003-04. It also exported over
51,000 vehicles (highest ever since it started exported in 1986) during the
year, raising the cumulative tally of exported vehicles to over 3, 30,000.

In recent years, Maruti has made major strides towards its goal of
becoming Suzuki Motor Corporation’s R and D hub for Asia. It has
introduced upgraded versions of WagonR Zen and Esteem, completely

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designed and styled in-house. Maruti’s contribution as the engine of growth
of the Indian auto industry, in deed its impact on the life style and psyche of
an entire generation of Indian middle class, is widely acknowledged. Its
emotional connect with the customer continues.

Customers have rated the company number one in customer

satisfaction yet again in the J D Power Survey 2004. Maruti is the only
market leader in the world to be ranked number one in customer satisfaction,
and the only company to top customer satisfaction rankings for five years in
a row.

The company has also been ranked number one in J D Power Sales
Satisfaction Survey 2004.Maruti products including Maruti 800, the Zen and
the Esteem have been rated best cars in their category in Total Customer
Satisfaction Survey 2004 conducted by TNS – Automotive.

The company’s quality systems and practices have been rated as a

“benchmark for the automotive industry world-wide” by A.V. Belgium,
global auditors for International Organisation for Standardisation. In
keeping with its leadership position, Maruti supports safe driving and traffic
management through mass media messages and a state-of-the art driving
training and research institute that it manages for the Delhi Government.
Maruti’s channel partners own and manage 303 sales outlets across 189
Indian cities. The service network covers over 1000 towns and cities,
bolstered by 1923 authorised service outlets.

The company’s service businesses including sale and purchase of pre-

owned cars (True Value), lease and fleet management service for corporate

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(N2N), Maruti Insurance and Maruti Finance are now fully operational.
These initiatives, besides providing total mobility solutions to customers in a
convenient and transparent manner, have helped improve economic viability
of The Company’s dealerships.

Maruti had a successful fiscal in 2003-04. Maruti’s Total Income

(net of excise) during the year was Rs.97, 510.2 million (* US $ 2.17
billion), a growth of 31 per cent over the previous year. The company’s Net
profit during this period was Rs.5421.8 million (* US $ 120.5 million), up
270 per cent over 2002-03.

The company is listed on Bombay Stock Exchange and National

Stock Exchange.

HISTORY:

Maruti Udyog Limited (MUL) was established as a private limited

company in India on February 1981, through an Act of Parliament to meet
the growing demand of a personal mode of transport caused by the lack of
an efficient public transport system, MUL is wholly owned by the Govt. of
India at the time of its birth.

Suzuki Motor Company was chosen from seven prospective partners

worldwide. This was due not only to their undisputed leadership in small
cars but also to their commitment to actively bring to MUL contemporary
technology and Japanese management practices (which had catapulted Japan
over USA to the status of the top auto manufacturing country in the world).

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 MUL was classified in the Public Sector as long as the equity of
Government of India remained over 51%. A licence and a Joint Venture
agreement were signed between Govt. of India and Suzuki Motor Company
(now Suzuki Motor Corporation of Japan) in Oct-1982, with Suzuki Motor
Corporation (SMC) acquiring 26% of the equity.

This newly formed organization was signed the primary objectives of:

1. Modernizing the Indian Automobile Industry by bringing in the latest

technology
2. Production of fuel-efficient Vehicles to conserve scare resources
3. Production of a larger number of motor vehicles which is necessary
for economic growth.

Maruti created history by giving into production in a record 13 months.

On 14thDecember 1983, the Prime Minister of India, Mrs. Indira

Gandhi, released the first vehicle for sale by handing over the keys of a
Maruti 800 to Mr. Harpal Singh of Delhi.

Maruti exceeded the volume targets, and in March 1994, it became the
first Indian Company to produce over one million vehicles, a landmark yet
to be achieved by any other car company in India. Maruti is the highest
volume car manufacturer in Asia, outside Japan and Korea, having produced
over 4 million vehicles by April 2003. Maruti revolutionized way Indians
looked at cars.

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VISION, VALUES & ETHOS OF MUL:

MUL Vision is to be a Leader of the Indian Automobile Industry,

Creating Customer Delight and Share holder’s Wealth, Transforming Maruti
to be pride of India.

The core values of MUL are Customer Obsession, Fast, Flexible and
Fast Mover, Innovation and Creativity, Networking and Partnership,
Openness and Learning, Quality systems and Customer Satisfaction through
continuous improvement of our products and services by following PDCA
(PAN-DO-CHECK-ACT) in all functions of our organization.

At Maruti, the approaches to quality are in keeping with the Japanese

Practice “build it into the product” Technicians themselves inspect the
quality of work. Supervisors educate and instruct technicians to continually
improve productivity and quality. The movement of quality indicators is
reviewed in weekly meetings by the Top Management.

MUL believes that its employees are its greatest strength and asset. It
is this underlying philosophy that has molded the work force at Maruti into a
team with common goals and objectives. The Employee Management
relationship is therefore characterized by:
• Participative Management
• Team work and Kaizen

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 • Communication and information sharing
• Open office culture for easy accessibility
To implement this philosophy, several measures have been adopted
like, a flat organizational structure. There are only three levels of
responsibilities ranging from the Board of Directors, Division heads to
Department Heads. Other visible features of this philosophy are an open
office, common uniforms (at all levels), and a common canteen for all.
This structure ensures better communication and speedy decision
making processes. It also creates an environment that builds trust,
transparency and a sense of belonging amongst employees.

AWARDS AND ACHIEVEMENTS:

In 2005, Maruti closed the finance year 2004-05 with an annual sale of
472122 units, the highest ever since the company began operations 20
years ago.

In 2004, Maruti Udyog Ranks Highest in Customer Satisfaction with Dealer

Service in India for the Fourth Consecutive year in the J.D. Power
Asia Pacific 2004 India Customer Satisfaction Index (CSI) Study
SM A copy of the satisfaction Index can be viewed in Appendix – B.

In 2003, Maruti has won the First place in “Excellence in Suggestion

Scheme2 Contest 2003”, which is the 6th consecutive award won in as
many years, Indian National Suggestion Schemes Association
(INSSAN) organizes this contest. Since 1998 Maruti has won this
award 10 times.

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In 2002, Maruti’s Quality Management System of its Press Shop and
associated functions (collectively termed as Press Function) got
certification for conformance to the requirements of TS 16949:2002 1
standard. A copy of the ISO TS 16949:2002 Certificate received by
Maruti can be viewed in Appendix–C.

In 2001-2002: Maruti launched its new businesses. Maruti True value

(buying, selling or exchange of pre-owned cars), Maruti Finance) car
financing), Maruti Insurance and N2N (Corporate Lease and Fleet
Management)

In 2001, Maruti Udyog Ltd. Became one of the first automobile companies
anywhere in the world to get an ISO 9000:2000 certification.

AV Belgium, Global auditors for International Organization for

Standardization (ISO), certified Maruti after a four day long audit,
covering varied parameters like Customers Focused organization,
Leadership, Involvement of people, Process approaches, System
approaches to Management, Continual improvement etc., a copy of
the ISO 9000:2000 Certificate received by Maruti can be viewed in
Appendix – C.

In 1999, Central Board of Excise & Customs awarded Maruti with “Samman
Patra” for contribution to exchequer and being an ideal tax assesses.

In May 1995, Maruti got ISO 9002 certification. The audit for this covered
quality assurance in production, installation, marketing and sales as

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 well as after sales services. We were also one of the first companies
in the world to pioneer ISO 9000 certification for our dealers.

DIRECTORS BOARD

MUL is a Board-managed company. Currently the Directors on the Board

are:

• Mr. Shinzo Nakanishi, Chairman

• Mr. Jagdish Khattar, Managing Director
• Mr. Junzo Suginori, Joint Managing Director
• Mr. Shinichi Takeuchi, Joint Managing Director
• Mr. Kinji Saito, Director (Marketing and Sales)
• Mr. Osamu Suzuki, Director
• Mr. R.C. Bhargava, Director
• Mr. S.V. Bhave, Director

The Independent Directors on the Board of Maruti are:

• Mr. Kumaramangalam Birla’s, Chairman, A V Birla Group

• Mr. Amal Ganguli, Former Chairman, Price Waterhouse
Coopers, India
• Mr. Pallavi Shroff, Senior Partner, Amarchand and Mangaldas
and Suresh A Shroff and Co.

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 • Mr. Manvendra Singh Banga, Chairman, Hindustan Lever Ltd.
(HCL)

PROFILE OF VARUN MOTORS

Varun group commenced its srikakulam operations in act 1992 with
bajaj auto franchise. which is now popularly known as “varun motors” this
spectacular growth is only due to aggressive and clear headed management
of Mr. v. prem kumar who has over two decades rich experience in auto
mobile business couple with sheer hard work of every staff members and
above all out standing customer support.

Varun motors captured 60% of srikakulam two and four wheeler

marketing successfully with standing the challenges from the competition.
As of now, varun motor has work force of 140 members with a annul turn
over of 22 cores for better customer care, an ideal service customer is going
to operation from now in the city.

Introduction of cars division:

The maruti showroom of varun motors private limited is the one of the
India’s largest and most modern auto mobile measuring 17000’ sq.ft its
capital turn over 400 to 500 cores , it is the second largest company in India .
The varun group has expanding their business to vizianagaram, rajamundry,
and vijayavada

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 In recognition of varun motors bajaj auto ltd awarded the dealership it
was awarded and laurels from bajaj auto for its out standing performs
Varun motors ltd recently secured the dealer ship for a reliable maruti
vehicles being manufactured by maruti udyog limited.

Product availability in varun motors:-

 Esteem.
 Versa.
 Zen Estilo.
 Maruti-800.
 Omni.
 Swift.
 Swift Dzire.
 Maruti SX4.
 Grand vitara.
 A – Star.
 Wagon R.
 Alto.

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 MODELS AND PRICE LIST ON MARUTHI CARS

Maruthi 800
Description On Road Price
STD BS-III 218464
STD BS-III (M) 220997
AC BS-III 240030
AC BS-III (M) 242563
STD LPG BS-III 234789
STD LPG BS-III (M) 237326
AC LPG BS_III 256371
AC LPG BS-III (M) 258918
BS=-II Limited (Uniq) 245565
BS-III Limited (Uniq) (M) 248108

ALTO
Description On Road Price
STD BS-III 260973
STD BS-III (M) 2644444
LX BS-III 295388
LX BS-III (M) 298851
LXi BS-III 314349
LXi BS-III (M) 317820

OMINI
Description On Road Price
5 SEATER-BS-III 259569
5 SEATER-BS-III (M) 262112
8 SEATER –BS-III 261557
8 SEATER-BS-III (M) 264289

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5 SEATER-LPG BS-III 272145
5 SEATER LPG-BS-III (M) 274691

WAGON R
Description On Road Price
LX BS-III 368266
LX BS-III (M) 371741
LXi BS-III 388053
LXi BS-III (M) 391528
VXI BS III 412109
VXI BS III (M) 415584
LX Petrol/LPG 387559
LX Petrol/LPG (M) 391038
LXI Petrol/LPG 410459
LXI Petrol/LPG (M) 413938
VXI ABS BS III 443661
VXI ABS BS III (M) 447136
AX BS III 497533
AX BS III (M) 501008

A STAR
Description On Road Price
A Star LXI 398701
A Star LXI (M) 402172
A Star VXI 428230
A Star VXI (M) 431700
A Star ZXI 468189
A Star ZXI (M) 471659

ZEN ESTILO
Description On Road Price
ESTILO – LX 357986
ESTILO-LX (M) 361461

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ESTILO-LXI 381826
ESTILO-LXI (M) 385301
ESTILO-VXI 407249
ESTILO-VXI (M) 410724
ESTILO-VXI (ABS) 436859
ESTILO-VXI (ABS) (M) 440334
ESTILO-Sports 408504
ESTILO Sports (M) 411979

SWIFT
Description On Road Price
LXI BS III 468460
VXI BS III 502265
VXI with ABS 523554
ZXI BS III ABS 591780
LDI BS III (Diesel) 537059
VDI BS III (Diesel) 574690
VDI ABS BS III (Diesel) 595145

swift DZIRE
Description On Road Price
swift Dzire LXI 518500
swift Dzire VXI 569959
swift Dzire ZXI 669617
swift Dzire LDI 614888
swift Dzire VDI 664207
swift Dzire ZDI 755298

SX 4
Description On Road Price
SX4 VXI 755543
SX4 ZXI 831672
SX4 ZXI with LS 869203

VERSA
Description On Road Price
VERSA-STD 5S (M) 421925
VERSA DX1 5/8/S (M) 499921
VERSA DX2 5/8/S (M) 540128

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Service offered
• Three free services and paid service after sale of the car.

• Free check up complaints.

• Demonstration for new product.

• Acceptance of warranty claims.

• Finance through banks.

Working time
Working hours in varun motors are 10 hours per day commencing from
8AM to 6PM with two hours for launch.

Maruti tie-up companies:

• Citicorp maruti.
• Maruti country wide.
• ICICI.
• HDFC bank.

30
• Standard charted.
• ABN amro bank.
• Kotak Mahindra.
• Sundaram finance

31
32
 ORGANIZATION STRUCTURE

Organization involves the determination of the work to be done in the

concern. To assignment of the different functions to different people employed in
the concern and the co-ordination, the activities to be performed by all of them, the
efficiency of the concern depends upon the way in which it is organized and spirit
of loyalty i.e., Devolution to duty with which the different people perform this
work.

The determination of work to be done in an organization and the assignment

of the different items of works of different people employed in the concern
naturally constitute. Some of the most crucial steps in organizing the concern the
assignment imply that there must be persons who have the authority to assign duty
to others.

It follows that in the organization there should be some employees who

should be able to execute the orders which are assigned to them by the higher
groups.

The authority and subordinate i.e., the position and designation of each
person in hierarchy of the organization are the structure of the organization. A
diagrammatic representation of the flow of the authority and the subordinate
position of each employee in the organisation is called “organization chart”.

The organization structure presents a summarized view of the whole

organization. It shows not only the position which every employee occupies in
the organization.

33
 According to sec (26)2 of the Companies Act, M.D. is defined as a director
who is instructed with substantial power of management which would not
otherwise be exercisable by him. The M.D. of VARUN Motor Ltd., Mr. Jagadish
Khattar looks after the general administration and functioning of various
departments.

BRIEF DESCRIPTION OF DIFFERENT DEPARTMENTS AT (V)

Varun Motors is a well developed organization which is flourishing in a

rapid way consisting of different departments performing all the important
functions for the success of the organization in every step.

ADMINISTRATION DEPARTMENT:

The Administration Department is one of the important departments, which

looks after various aspects and maintenance of telephone exchanges. It also
includes Accounts and CRM Departments under it.

SALES ADMINISTRATION DEPARTMENT:

This department comes under marketing department which mostly looks

after the administration and sales activities of the vehicles of the organization. It
continuously coordinates the dealers and area officers and aids in distributing the
vehicles to the dealer according to the demands. It collects information regarding
market demands of different models of the vehicles.

34
SERVICE DEPARTMENT:-
This department comes under the marketing department. It provides services to
customers. The various functions of this department.

• Provides service training to field officers

• Feed back to various departments about the product
• Warranty processing
• Makes service trials
• Sale of manuals and operators instruction books
Under this department we have works department, stores department, spares
department.

BRAND POSITION IN THE MARKET:

“Production Marks” were used in olden days to distinguish a product this is

produced from different production units. These are now known as brand names.
Brand name is strongly associated with the product quality in the minds of the
customer.

In order to be successful you need to be effectively communicating your

product to the prospects. This process of communication of a message of the
brand / product so that it could be seen, heard and Accepted by the human mind of
your prospect, is defined as the positioning of your brand.

Brand is a major issue in product strategy. On the one hand, developing a

branded product requires a great deal of long term investment, especially for
advertising, promotion and packaging.
35
The Brand name can convey up to six levels of meanings. They area:
* Attributes: A brand brings to mind certain attributes. Maruti suggests
durable, low priced, well-built, well-engineered, high prestige
automobiles.
* Benefits: Attributes must be translated into functional and emotional
benefits. The attribute “durable” could translate into “I won’t have to
buy another car for several years”

* Values: The brand also says something about the producer’s value
Maruti stand for high performance safety and prestige. It’s a social
status symbol

* Culture: The brand may represent a certain culture. Maruti represent

world class culture, organized effort, efficiency and high quality.

* Personality:The brand can also project a certain personality

* User : The brand suggests the kind of consumer who buys or uses the
product.

One of the first steps in building the brand is to find out what promises to
keep. Then figure out what promises you realistically can keep. Finally take a
long careful look at your competition and decide which promise would give you
the best competitive advantage. This process of arriving at a focussed, credible
value proposition is the kernel of brand building activities.

36
 Such are the activities being done by Maruti. This systematic approach
resulted in the fact that a common man too knows about Maruti Cars. Every hook
and corner of the Maruti’s Market domain has a Maruti servicing centre with 24th
service facility.

Maruti ranked No.1 in customer satisfaction by J.D. Power CSI (2001) for
4th time in a row and also J D Power ranked 3 models (2003 Oct) of Maruti op
Top: Wagon R, Zen and Esteem, Given the scale of 50 Laky cars on road, the
sheer diversity of Maruti customer and the fact the Maruti sells more than all
competitors is simply incredible.

Imagine market 70000 precisely engineered components and assembling

them perfectly in to a car. Imagine doing this for more than 50, 00,000 cars in a
row, with 10 different models and over 100 variants that tells why India Trusts
Maruti more than any one else to build the cars of the future.
Let’s see the Brand Position of the Maruti’s products in the local markets in terms
of the different attributes as indicated below.

Technologically, Maruti is having a preference percentage of 80% Maruti

uses the advanced high-end engineering design equipment in the manufacture of
its cars.

The highly structured, well organized and disciplined servicing terms and
the technicians at Maruti service stations attend to and repair the faults in no time.
Thus the survey resulted in a customer rating of 95%.
In terms of the features of the car, Maruti enjoys comparative 65%
availability. This could be due to the particular target group being focused by
Maruti, which require a good cost-benefits analysis.
37
 Nearly 80% feel the Maruti’s cars are quite economical and nearly 85% feel
it to be a social status symbol to own a car of this brand name.
The customer survey even showed that 75% do agree with the fact that the
comfort derived is very much satisfactory and also that the mileage is good. “At
times above expectations”.

“If you talk about change but don’t change the reward and recognition
system, nothing charges”. Says Paul Allaire, CEO. Xerox Crop. In a similar
sense it’s
very essential that, only when you have a clear understanding of what your present
status is in the market, will make you design effective strategies for success.

So for the clear understanding of the brand position in the market, let’s
visualize the above data in the form of a bar chart. I hope a picture speaks more
than a thousand words.

The above chart clearly shows the amount of competitive pressure that
exists for Maruti’s products in the Market.

Using this data we can design strategies for expanding the markets. For a
well-trained eye, the above chart speaks of the cost of mistakes with special
emphasis on the growing customer expectations.

Finally the chart presents the current status of the brand position in the
market in terms of all the parameters represented in the x-axis of the chart.

38
 FINANCE FUNCTION

The financial decisions play a vital role in any firm. So that it is essential to
set up an efficient and effective organization for maintaining finance functions.
Varun has a finance department which is directly linked with the top management.
The finance department is work under the Manager finance. This department
looks after allocation of funds, auditing, costing and accounting of financial
resources of the organization. Apart from these functions, the financial
department looks after the provident fund trust as the treasurer, capital purchase,
taxation and final accounts.

FINANCIAL PLANNING & CONTROL:

For establishing co-ordination and administration as a part of management,

a good plan for financial control is essential. This plan includes profit planning
program for capital investment. Financing sales forecast and also budgeting.

To know present financial position and profit measurement Varun Motors

Limited is having enough financial resources for investment. It is procure funds
from sale of product and loans.

For comparing actual performance with operating plans & standards and to
interpret the results of operations to the top managements of the Business.

For the protection of Business through internal control internal auditing and
assuring proper insurance coverage along with other protection coverage programs
are used.

39
 This department looks after allocation of funds, auditing, costing and
accounting of financial resources of the organization. Apart from these functions
the financial department looks after the provident fund trust as the treasurer,
capital purchase, taxation and final accounts.

HUMAN RESOURCES FUNCTION

Personal department plays an important role in every organization. Under

the personal department man power will be acquired. Developed trained so as to
accomplish maximum efficiency and economy in the functions and the objectives
of the organization.

The main functionaries of the personnel department is

• Planning
• Recruiting
• Selecting
• Appointing
• Developing
• Controlling
• Compensating
• Grievance handling and many more

MAN POWER PLANNING:

The company recruits the man power from both internal and external sources.

40
INTERNAL SOURCES:

Internal source include the present working force of the organization it is good
because the employer is in a better position to evaluate his staff than outside
candidates. Employee of a company is full aware of his organization and its
policies and he requires a little training.

TRAINING:

Generally the company gives training in the following aspects to its employees
• About the organization the selected employees should be trained for
acquiring the knowledge of their company and its policies and culture.

• About the machinery and equipment the selected employees should

be trained about equipment and machinery and sophistication in it so that
they can easily perform their job

• About the customer: under this the employees will acquire knowledge
about the types of customers who buy their company products. This sort of
training is very important for employees like sales people.

• Selling techniques: the selling techniques are mainly meant for sales
people. Generally for this, the specialized field trainers providing training
to the trainee. In his training, the trainees will learn how to sale the product
in more, profitable way when compared to competitors.

41
EXTERNAL SOURCES:

Every organization has to go for external sources for recruitment because all
the vacancies can not be filled through internal recruitment.

Recruitment can be done through

1. Employment exchange and agencies

2. Recruitment from colleges
3. Recommendations etc.

SELECTION:-

The next phase of man power planning is selection main steps in selection
process are:

• Screening of applications
• Review of application blank and references if necessary
• Physical and psychological examination
• Final scrutiny and placement

After the selection appointing the right person in the right job, their
performance evaluation will be done through the techniques of performance
appraisal, and giving them the feed back where there lacking and giving them
training if necessary and designing the development programs in order to improve
42
the employee morale towards the organization, by which the over all productivity
will increase and the cost factor will be reduced.

• To look after the entire aspects of personnel and HRD

• Hold meetings
• To conduct HRD programs from time to time
• To maintain peace and harmony in the organization
• To investigate the working of the employees in case of misconduct
• To take active part in the aspect of procurement etc.

43
44
45
46
 MARKETING FUNCTION

• Advertising a newspaper
• Free campaigns
• Test rides
• Mileage contests
• Loan meals
• Gift schemes
• Hoarding & wall paintings
• Sponsoring youth events

Promotional expenses have been some by both varun motars & maruti
services in advertisement cost.

SERVICES OFFERED BY THE COMPANY

Services offered by the company, which are non-tangible, do play a major

role in the buying decision of the customer. The attributes of the services add
upon the value and would make a lot of difference between buy and not to buy.
Usually the cost-benefit analysis made by the customer do account for the after
purchase services offered by the company.

Services thus play a major role in the formation of positive image of the
company in the mindset of the customer. Having considered the importance of
the services on the buying process of the customer, let’s view it with special
reference to the company under consideration, i.e., MUL services.
47
 Maruti Udyog Limited offers a number of services to its customers. Some
of the major ones include:

S1. N2N Fleet Management

S2. Maruti True Value
S3. Maruti Finance
S4. Maruti Insurance
S5. Maruti On-road Services
S6. Forever Yours Extended Warranty
S7. Maruti Genuine Accessories
S8. Anytime Maruti-Call Centre

Let’s discuss about each of these services in detail to understand the kind of
attributes Maruti has considered to fill up the service package. This gives us birds
ye view of kind of Marketing-Mix it has designed and also the effective strategies
it uses to capture a large market share.

S1. N2N Fleet Management: Kick the worries. Enjoy the car.

Car maintenance is a time-consuming process, especially if you own a fleet.

Marti’s new N2N Fleet Management Solutions for companies, takes care of the A-
Z of your automobile problems. This service includes end-to-end back-
ups/solutions across the vehicle’s fire.

48
There are three stages in the life cycle of corporate fleet ownership. They are
1. Acquisition: Where Corporate formulate fleet policy, Identify
& evaluate options for various levels of employees, negotiate with dealers/OEMs
and Acquire corporate fleet.
2. Operations : Now maintenance budget is prepared. Maintenance
contracts with work shops are negotiated to operate and maintain fleet. Track
expenses are also taken care off.
3. Re-marketing: Market value of existing fleet is assessed and Cars are
auctioned to employees or quotations invited from external brokers and finally a
new fleet are acquired.
Similarly there are three types of risks in the life cycle of fleet ownership;

* Residual value risk: A fleet acquired by cash purchase, hire purchase

or loan is in the name of the corporate and the assets are reflected in its balance
sheet. AT the end of the corporate usage tenure (typically 3-5 years), the
corporate faces the risks of not realizing a fair value, delay in the disposal of the
assets and administrative over-heads. The risk is high if the vehicle is not
maintained as per OEM prescribed standards.
* Maintenance risk : During the fleet ownership stage, if the corporate
decides to maintain the fleet on its won or contracts with work shops for
maintenance on “actual expense” basis, the corporate faces the risk of unplanned
maintenance expenditure. Most corporate budget for maintenance expenditure on
the basis of historical data, which result in sub-optimal forecasting. The corporate
also faces the risk of poor maintenance quality because of absence of monitoring
of the jobs performed by maintenance work shops.

49
* Obsolescence risk : The increase in the rate of innovation in
technology and design in automobiles makes newer and better technology models
available to consumers, which considerably increases the risk of obsolescence.

Maruti’s suite of N2N services covering acquisition, maintenance and sales are
enlisted below:

S2.Maruti True Value: Get the best value for your car

Maruti True value helps you to buy, sell or exchange a pre-owned car. You
get the full value for your dealings, in terms of quality, Reliability, Transparency
and Convenience with your eyes closed. Buying or selling a used car is a gamble.
With Maruti True Value, it’s like holding the winning hand. All services are
aimed at making your transactions with Maruti as hassle free and enjoyable as
possible. Maruti’s dedicated and honest team will ensure that you have a
rewarding experience at Maruti True Value.

At Maruti True Value, a pre-owned car is Re-Conditioned to Maruti

standards in state-of-the-art work shops by trained mechanics using only genuine
parts. Cars are put through a stringent 120-point check that covers all major
systems, like the engine, brakes, transmission etc. This transparent free
evaluation system, which looks in to the merits of your car, would take 15-20
minutes to give you the best possible price of your Maruti Suzuki. After which,
engineers certify their trustworthiness. The payment in full to the seler is made
immediately, once verified at the RTO as genuine. Only then the car is put to
sale.

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 The three free services will be available at the following intervals or
mileage, as the case may be:

• First free inspection service :

With in 45 to 60 days or running 1000 – 1500 KM (over and above
the mileage at the time of delivery) whichever occurs earlier?

• Second free inspection services :

With in 90 to 120 days or running 5000 – 5500 KM (over and above
the mileage at the time of delivery) which ever occurs earlier?

• Third free inspection services :

With in 210 to 240 days or running 10,000 – 10,500 KM (over and
above the mileage at the time of delivery) which ever occurs earlier?

51
S3. Maruti Finance:

This new initiative is a long-term proposition besides acting as an enabler to

the core business of Maruti. This special purpose scheme is cantered on the
customer through transparent deals and availability of other bundled services.

Maruti finance is now banking on Maruti Udyog’s extensive dealership

network that reaches every corner of the country. Using this service, customers
can get car finance at competitive prices. After the establishment of this new
wing, the sales volume increased appreciable

The company’s largest bank (SBI) and the largest Car marker (MUL) have
joined hands to make affordable car finance available to the large customer pool
across the country. This Mega-alliance makes car loans available at lower interest
rates to a wider section of people, with transparent terms and conditions. The
unmatched combined network of SBI branches and Maruti outlets support it and
make it realty.

Hence is the list of Unbeatable Advantage of SBI-Maruti Car Loans:

52
 • Two market leaders in their respective industries with trusted brand
names.
• Lowest interest rates of 9.50% (Note: Interest rates at the time of
purchase of the car will be applicable interest rates are subject to change
and are at the sole discretion of SBI. Interest rate of 9.50% applicable
on repayment periods up to 36 months. An interest rate of 10.00% is
applicable for a repayment period of 7 years Credit is at the sole
discretion of SBI).
• No processing fees or hidden costs to ensure transparency.
• No extra charge for repaying loans ahead of schedule.
• Standardized loans that offer fixed interest rates across models and
locations
• Car loans available for diverse categories of customers including
government employees and agriculturists.
• More loan amount available as it is extended on the basis of the car’s
on-road price, not ex show room price.

Prospective customers. But Maruti isn’t contented with that. It thought

that it’s the right time to join hands with some of the big bosses like the HBFC,
GE Capital etc.,

Maruti Country wide was set up when GE Capital, HDFC and Maruti
Udyog Limited formed a captive finance company in 1995, a professionally
managed company. Which would share the ideas and work culture of the parent
companies? The prima objective being to cater to the needs of Maruti car buyers
by offering innovative finance schemes for the purchase of Maruti cars.

53
 Later, Citicorp Maruti Finance Limited was formed when Maruti joined
hands with Citibank in May 1998 located in 23 cities; this is the first company that
provides services to finance the purchase of second hand cars nationally. Citicorp
Maruti Finance Limited also offer a wide range of flexible and customized
financing options at affordable rates to individuals buying a Maruti car.

Apart from all these above mentioned standardized alliance, the organisation
also gave the dealers the flexible to choose form this wide range of options or
organize a genuine & more beneficial one himself. Thus with such a systematic
procedure being followed, it’s the Maruti’s customers who are always at a winning
edge.

S4. Maruti Insurance:

Maruti had tied with Bajaj Alliance and National Insurance Corporation, two of
the foremost insurance companies to bring this service for all its customers.
Maruti Insurance allows customers to send enquiry and get a free renewal
remainder and claim. Post accident repairs saving valuable time and efforts
through appointment contract persons.
S5. Maruti On-road Services:

Even with the most stringent quality measures, complex machines like cars can
sometimes malfunction, just call the 24 Hour Maruti On-road Service (MOS)
centre during an emergency and help will be on its way to you.

The MOS ensures:

54
* Round-in-clock services in almost every city
* A common contract number across the country 9622-9622-00
* A computerized call-monitoring system dispatches a mobile MOS van to
you at the earliest.

S6. Maruti's Forever yours Extended Warranty:

As everyone known, no Maruti really needs a warranty. But just to go that
extra bit to show how much Maruti cares. They have enhancing the 2-year
primary warranty on your car with the Forever Yours Extended Warranty *
program Now you can buy Extended Warranty with your Maruti, if your Maruti
is purchased on or after 14th May 2001, and the vehicle is still covered under the
primary warranty.

S7. Maruti Genuine Accessories:

Maruti Genuine Accessories (MGA) is a new initiative to offer you high quality
accessories at competitive prices. Maruti follow world Class engineering and
design processes to develop each and every item of MGA. Many of these items
are imported from Suzuki, Japan. Every MGA item has perfect mechanical and
electrical compatibility with the vehicle and offers you unmatched performance.
The below table shows a sample list of the accessories and the advantage one can
derive using them.

ITEM THE MGA ADVANTAGE

Alloy Perfect Match with vehicle. Safe and reliable. Virgin
Wheels Alumium from ISO certified sources. 100% x-ray tested.
Endurance tested. Excellent finish. Better cooling. Better
55
 Braking efficiency.
Body High Quality imported Fabric. Water-resistant. 1-Year
Cover Warranty. U V Ray protection (UV rays cause paint fading).
Very light and easily handled. Matches body profile
perfectly. Clamp mechanism. Comes in convenient carry
bag.
Carpets Imported materials used. Perfectly fits the contour of
vehicle floor. Attractive designs, matching the interior.
Odours free. Fire resistant. Fully Washable. Anti Slip
mechanism to prevent slipping on floor. Special thread
interlocking. Dust absorbing. Reinforced cushioning at
driver's area to prevent balding.
Door Perfect lit with vehicle profile. Unique attachment provided
Visors for strong tit. Suzuki (Japan) product. Weatherproof.
Offers protection from sun-rain. Long lasting and unlike
other visors, do not become brittle or crack.
Fog Lamps Comes with complete electric wiring, protection relay,
switch and lamps. Electrically compatible with the vehicle
electrical systems, therefore perfectly safe for the vehicle.
No need to cut / splice original vehicle wires, clip-on
mechanism. Perfect fit mechanically. Tested for 10n1Z
distance visibility. Beam adjustment screws.
Stereo Electrically compatible with vehicle electrical system,
System therefore perfectly safe for the vehicle. No cutting / splicing
of original wiring on vehicle needed (clamp-on system).
High Quality sound and wide features. Easy installation.
Tested over 50,000 KMs. Durable. Approved by Suzuki,
Japan. High Quality speakers and antenna.
Security Many Advanced Features from complete vehicle protection.

56
System Electrically compatible with vehicle electrical system,
therefore perfectly safe for the vehicle. No cutting / splicing
of original wiring on vehicle needed (clamp-on system). 3-
Years Warranty
Spoilers Designed by experts to perfectly match the vehicle profile.
Gives the best aerodynamic and sporty look. Best tit.
Special high strength and low weight materials used. If light
provided, the electrical are perfectly compatible with the
vehicle electrical systems. Excellent surface finish.
Seat Leather Seat Covers are made from genuine Italian seat
Covers covers. In Fabric Seat covers, the best quality fabric used.
High levels of craftsmanship. Perfect tit and finish.
Matches interiors. Abrasion tested. Same quality as those
fitted from factory.
Car Care Body Polish, Glass Cleaner, Shampoo. Tire Polish.
Products Upholstery cleaner, Dash board Shiner, etc. Besides these
there are a host of other accessories like Warning Buzzer
Assembly warns a driver when the door is open and, reminds
him to fix the seat belt. There I are high quality rear parcel
tray made of reinforced PP, FUCOT anti Rust Treatment
(from Futon), Bardahl Fuel Additive (from Bardahl), etc.

57
S8. Anytime Maruti - call centre:

In addition to the existing channels of communication, Maruti always explore new

avenues of one-to-one interaction with our customers. As a major step in
this direction, it started a Pilot Call Centre for the people residing in Delhi
and Gurgaon. This service, named Anytime Maruti, has now been
extended to Chennai, Bangalore, Hyderabad and Mumbai. Customers in
these cities can contact at any time using a Toll-free number 1600-11-1515
from their MTNL/BNSNL phones.

Now there is one more channel for you to contact MARUTI. Anytime Maruti is
now accessible to the customs using mobile phones also. The number is (0)
98118-01515. This Mobile number will not only connect a mobile phone
user but also allow subscribers of Touchtel, WLL, and Tata etc., to connect
Anytime Maruti. Please note that the calls to this mobile number will not
be toll-free.

The objective of this Call Centre is to ensure you have quick and easy access to all
information on Maruti's models, prices, finance options, dealers and the
locations of the numerous service stations. There exist future plans to
launch this service nationally.

There is also a web site designed by Maruti Udyog Ltd. to provide latest online
information regarding various facilities and other related stuff to all the

58
Internet savvy. Web is also playing a major role in influencing the
customer.

59
60
CONCEPT OF CUSTOMER RELATIONSHIP MANAGEMENT

1) Customer Need :
Customer need is the first one which determines company's Product, its continuity,
its availability. Understanding the customer need and we have to move in the market
on the basis of updating needs. It's a main source which has no limit & never ends.

One customer may have one need or may have 1000 s of needs.
It leads the customer to buy the product in the market. When he buy the product in the
market, he. Will go for product's availability, quality and its quantity, price.
Customer will choose the right product which match with his taste.

The relationship starts now. If a customer buys the product 1s time at our
company, we should attract him as not to shift to the other company. That will be
based on our "interact with him, understanding his needs, response to him". If he
satisfied with our product & with us, he can't go for other companies. If he really
satisfied, he will conduct repeat purchases at our company.

When coming to our concept CRM, CRM means simply managing Customers &
monitoring their behaviours. CRM has to potential to mould A customer's relationship
with a company and increase revenues in the Bargain.

61
 Relationships are as old as mankind. For that, even the traders and Businessmen
are also basing on relationship for their success. It building Close relationship with the
customers that makes us to gain the fruitful •Returns-to the companies.
With my experience, I have designed some means for how to get Better returns & how
to attract the customer. They are:
• Providing special benefice’s to the customers.
• Creating trust on us in their minds.
• Maintaining interdependency.
• Sharing ideas & views, values.
• Giving respect to him.
• Commitment with him.

• Go for deep’ relation with him by day by day.

By following above, we can maintain good relation forever.

CRM means building long term relationship with customers and “understanding
their needs and responding through offering different products through different
channels.

PROCESS OF CRM:

CRM is a step by step process, which deals with the customers.

Customer Need:
In the process of CRM, it begins with the "understanding the Customer Need".
If it carefully studies the mind of customer we can easily understand.
It's the main step to start the best relation with a customer.
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Customer Response:
After understanding the customer need, it should carefully observe the customer
response. It is the feed back. From, the customer when we receives him/her. It will. be
useful to us to provide the best products to him and. to change the dealing with the
customer.

Customer Satisfaction:
The very important step is "customer satisfaction". Satisfying the customer is very
difficult task in the present marketing environment. Because every company mostly
depends on this step only. To satisfy a customer, different types of methods have been
come into existence. So It should adopt the best method.

It should satisfy a customer by providing the best products & by maintaining close
relationship with him.

Customer Loyalty:

Loyalty of the customer is participating the main role in the mkt It means a
customer will purchase our products forever & again & again it has to make him as to not
to shift to other brands or other company products.

Customer Complaint:
After selling the product to the customer it should ready for get the complaints from
the customer. Like, damaging of the product, price of-the. Product, exchange of the product.
90% of the relationship with the customer will depends on this complaint handling only.
If it gives the immediate response he/she will satisfy. If not he/she may go for other
63
brands. In this step we have to be very careful with him. We should handle & solve the
complaints.

64
65
IMPORTANCE OF CRM

1) IDENTIFYING THE CUSTOMER NEEDS:

To identify the customer needs, it participating a vital role. Through the close
relationship with them, they can easily explain their problems and needs. So it can easily
identify their needs. So now we can easily take the next step to satisfy them.

2) HELP IN REDISCOVERING & UNDERSTAND:

CRM helps in reclaiming the potential customers & understanding their needs and
requirements. If the CRM identify the needs, based on the needs it can respond to them.

3) IDENTIFYING UNTAPPED BUSINESS POTENTIAL

If the CRM is very perfect, it leads to improve the potentiality of the company. Best
relation with them, it allows us to identify untapped business potential which makes our'
company no. 1 in the market.

4) IDENTIFY FIELDS REQUIRED TECH:

Different fields requires different tech. Maintain a good relation with the
customers CRM can easily identify the fields required tech. For example, software tech.,
industrial.

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5) TO IDENTIFY STRONG AND WEAK POINTS OF CUSTOMER:

Relation, with the suppliers, also helps in identifying his strong And
week points of a supplier, His supply system strong or week. If the supplier is strong
we maintain the same, if not we rectify them.

USE OF TECH. IN CRM:

To improve the relationship with the customers, different comp. Will be

followed different. Technological systems,

a) Electronic points of sale

b) Sales force automation

c) Customer service helpdesk

d) Call centres

e) Systems integration

f) Contact with the customers

g) Personalizing customer interaction

These are the some tech. to go for deep relation with our customers.
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 TRADITIONAL & MODERN APPROACHES OF CRM

1) Contact with the customers by 1) Customer information system

Telephone, mail & in personal

2) Personal selling 2) Customer database
3) After sales service 3) Electronic points of sales
4) Complaint handling 4) Automation of customer support

5) Systems integration

5) Customer care
6) Customer satisfaction

6) Value to the customers

68
 THE 3 KEY STAGES OF CRM

1) SATISFACTION:

It is the first stage in CRM program. The next all steps in CRM Will based on
this stage. This stage acts as the foundation of a building. NATURE of Satisfaction:

1) Meet the customer needs & fulfil them

2) Giving clear cut explanation for the customer doubts & complaints

3) Minimizing customer faults & increase of production

2) PERFORMANCE:
And the second stage in CRM is performance based. It is the stage To know
what's present position of our company. The continuity of the Business is based on
this stage.

a) Evaluating perception of our company

b) Identifying customer retention

3) COMMITEMENT:

It's the last stage to where the CRM reaches. Commitment with The
customers helps to identify the next coming sales.
EVALUATE MULTIPLE NEEDS AND CONTINUOUS INBOND/
OUTBOND FLOWS:
THE VALUE OF CUSTOMER RETENTION:
A business without a customer retention plan will lose revenue and Mkt.
share. Customer Retention Strategies:

Even though customer relationships are one of a company's most valuable

assets, they are often one of the most undervalued assets too, in the constant battle to
gain new customers; it is easy to overlook the value existing customer relationships
hold.

All corporate are ultimately earned from conducting successful relationships

with customers. As the source of all your profits, customer relationships should be
valued and protected,

Every customer .relationship is an asset and has a economic value Or lifetime

market value (.lmv). A customer's LMV is determined by taking your average
customer transaction amount and multiplying it by the no. of transactions he/she will
conduct with your org.

Customer retention, keeping customer can be improved by explain ing to

your employees especially those on the front line who deal direct with your
customers. Just how much each customer is worth to your org.
 SEGMENTING CUSTOMERS

Understanding each customer becomes particularly important. Besides

for the same product or a service not all the customers can be treated as alike.
C.RM needs to divide & segmenting the customers. CRM needs to divide the
customer by
1) Tastes & Preferences•
2) Age groups
3) Lifestyles
4) Physical & psychological characteristics.

Increase Loyalty

^ It is an endeavor of any org. to that its customers are advocate for

the company and the products. Any company will like the mindshare status to
improve from being a suspect to being an advocate.

Any company, it has to invest in terms of its products and

services to its customers. It has to innovate and meet the needs of its customers
so that they remain as advocates on the loyalty curve. Repeat sales invariably are
low cost high margin sales. It has also the implication of being not "one time sale".
Besides, repeat sale are to induce satisfaction.
Q1. Occupation?

Sample Business Professional Employee Student

100 31 21 27 21

Business
Professional
Employee
Student

35

30

25
Business
20 Professional
15 Employee
Student
10

0
1

INTERPRETATION:-
From the above table and graphs observe that100 respondents reveals
that 31% of them are employees, 21% are businessman, 27% are
professional and 21% are students. So many employees are using these cars
Q2. What is the model purchased by you?

Sample Alto lxi Wagoner Swift Maruti 800 Omni

100 35 23 24 16 12

Alto lxi
Wagoner
Swift
M aruti 800
Omni

40

35

30
altolxi
25
ragonr
20 swift
maruti-800
15
omni
10

0
1

INTERPRETATION:-
From the above table and graphs observe that100
respondents reveals all the five cars are same usage alto lxi is 35%, wagonR
is 23%, swift is 24% maruti-800 is 16% and omni is12%. All are same
importance in cars.
Q3. How long do you using the car?

Sample Before 1 year Before 2 year Before 3 year Till now

100 33 27 10 30

Before 1 year
Before 2 year
Before 3 year
Till now
Omni

35

30

25
Before 1 year
20 Before 2 year

15 Before 3 year

Till now
10

0
1

INTERPRETATION:-
From the above graphical representation among 100respondents
reveals that 30% of the customer till now using, 33% of them are before 1
yrs usage, 27% are before 2 yrs, 10% are before 3yrs. Usage of the products.
Q4. Who influenced you to purchase a car?

Sample Adds Sales persons Friends Some other

100 11 38 30 21

Adds
S ales persons
Friends
S ome other

40

35

30
Adds
25
Sales persons
20
Friends
15 Some other
10

0
1

INTERPRETATION:-
From the above table and graphs representing that 100
respondents reveals that 30%,of them are friends , 38% of them are sales
persons , 21% are some other ‘s and finally 11% are adds . Influenced the.
Purchased on car in their friends are the main motivators.

Q5. How is their complaints handling?

Sample Excellent Good Average Poor
100 35 30 20 15

Excellent
Good
Average
P oor

40
35
30
Excellent
25
Good
20
Average
15
Poor
10
5
0
1

INTERPRETATIONS:-
In the above table and graph representation among 100 responds
reveals 35% of Excellent 30% good in handling the complaints, 20% are the
average and remaining 15% are poor in complaint handling.

Q6. How is VARUN MOTOR delivery system?

Sample Excellent Good Average Poor
100 27 27 33 13

Exc el
Good
A vera
P oor

35

30

25
Excellent
20 Good

15 Average
Poor
10

0
1

INTERPRETATION:-
From the above table and graphs observe that among 100 responding
reveals 27% are excellent 27% are good, 33% are average, and finally 13%
are Poor, opinion of them varun motors services are good.

Q7 what is overall satisfaction level with VARUN MOTOR people?

Sample Excellent Good Average Poor

100 32 38 17 13

Excellent
Good
A verage
P oor

40
35
30

25 Excellent
Good
20
Average
15 Poor
10

5
0
1

INTERPRETATION:-
From the above table and graphs observe that among 100 responding
reveals 32% are excellent 38% are good , 17% are average , 13% are poor
opinion of them varun motors services .

8. How is their response towards you entering in to the office?

Overall satisfied No of customers Percentage
Excellent 24 24
Good 48 48
Satisfied 28 28
Poor --- ---

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

5
0
4
5
4
0
3
5
3
0 E
xce
lle
nt
2
5 G
ood
2
0 A
vera
ge
1
5
1
0
5
0
1 2

INTERPRETATION:-
From the above table and graphs observe that among 100 responding
reveals 24% are excellent 48% are good , 28% are average , opinion of
them varun motors services are good.

9. What is overall satisfaction level with VARUN MOTOR people?

Longue facility No of customers Percentage
Excellent 12 12
Good 24 24
Average 64 64
Poor --- ---
 No of customers

Excellent
Good
Average

7
0

6
0

5
0
Exce
lle
nt
4
0
Go
od
3
0 Av
erag
e
Po
or
2
0

1
0

0
1 2

INTERPRETATION:-
From the above table and graphs observe that among 100 responding
Reveals 12% are excellent 24% are good, 64% are average totally the
Longue facility is average

Q10. How is their lounge facility?

Sample Excellent Good Average Poor
100 15 23 30 32

Excellent
Good
Average
Poor

35

30

25
Excellent
20 Good
15 Average
Poor
10

0
1

INTERPRETATION:-
From the above table and graphs observe that among 100 responding
reveals 15% are excellent 23% are good, 30% are average and 32%totally
the longue facility is poor.

Q11. What do you rate the following features:

Features Sample Poor Moderate Satisfactory Excellent
Transaction 100 17 38 30 15
Repair 100 27 20 30 23
ability

Spare parts 100 26 27 30 17

Time 100 17 30 17 36
bounding

INTERPRETATION:-
 Transaction

From the above table and graphs observe that among 100 responding
reveals 15% are excellent 30% are good , 38% are average , and finally 17%
are poor , opinion of them varun motors services are good.

Reparability facility

From the above table and graphs observe that among 100 responding
reveals 23% are excellent 30% are good, 20% are average and 27% are poor
in reparability facility is to be good.

Spare parts facility

From the above table and graphs observe that among 100 responding
reveals 17% are excellent 30% are good , 27% are average and 26% are poor
in this spare parts facility may be satisfied.

Time bounding facility

From the above table and graphs observe that among 100 responding
reveals 36% are excellent 17% are good, 30% are average, and finally 17%
are poor overall time bounding facility may be good

Q12. Was time loaner car provided to you?

Sample Yes No
100 78 22

Yes
No

90
80
70
60
50
YES NO
40
30
20
10
0
1

INTERPRETATION: -

In the above graph reveals that time loaner car provided by the varun
motors are 78% are YES and 22% are NO probably time loaner is good.
Q13. Explanation of work done & changers at the time delivery?

Sample Excellent Good Average Poor

100 23 30 25 22
 Excellent
Good
Average
Poor

35

30

25
Excellent
20 Good

15 Average
Poor
10

0
1

INTERPRETATION:
-From the above table and graphs observe that among 100 responding
reveals 23% are excellent 30% are good, 25% are average and 22% are poor
work done & changers at the time delivery is to be good.

SUMMARY

The Project Entitled “CUSTOMER RELATIONSHIP

MANAGEMENT” in Varun Motors Pvt. Ltd., divided into 4 Chapters.
The first chapter deals with Introduction of the industry, Scope of the
Study, Objectives, Methodology, Limitations.

In the Introduction of the Automobile Industry. The situation

Prevailing during the Last decade, and the opportunities are discussed.
After the Liberalization concept was introduced, there was huge growth
in the Automobile market, and at the same time there is cut-throat
competition prevailing.

At present there are many companies in India, it gives a detailed

history of automobiles different car segments and what are the new cars
there are going to launch. Not only has that it given the full details of
the brand Zen such as its features and facilities. By 2010 the Varun
Motors will becomes one of the top most five car makers in the world.

The Objectives are to

• To Measure the Impact of brand awareness, to measure the potential

customers

• To measure the sales potential of Maruti Zen cars in cities like Vizag

• To measure the attributes and benefits which influences the

customer’s decision?
Limitation for the study is:
• Duration of two months which is not sufficient.
• Confidential information is not available for an in depth study
 In the Second Chapter, it gives Industry Profile and Company Profile.
In this Company Profile it gives the details of all the directors and also
awards achieved. In Second Chapter it also gives the details of the Varun
Motors Pvt. Ltd. Passenger can have wide range for marketing Varun
Motors is having comprehensive efficient range or marketing.

This is one of the best show rooms in India Varun Motors offer the Full
range of cars of Maruti from small cars like Zen, ALTO and Swift etc.

Varun Motors is a leading player in cars distribution. It has its own

brand image. Width and depth of distribution through their branches in
many parts of Andhra Pradesh

FINANCIAL PERFORMANCE:
The Company is getting good sales and turnover. The sales are
gradually increasing. Its turn over in is 32 cores. We discussed about the
promotional strategies the company follows. It is an essential marketing
tool. A firm practices promotional strategies to face the competition and at
least the consumer. Firm’s promotional strategy depends on the situation
and has to change according to the market situation. The objectives of
promotional strategy are to promote sales, profits and create awareness.
The purpose of promotional strategies is achieving growth sales
increases in profits, meeting competition, creating awareness in customers.

PROMOTION TOOLS
• ADVERTISING
 • PUBLICITY
• SALES PROMOTION
• SALES FORCE

And evaluating various promotional tools.

The Third Chapter deals with the concepts of “Brand Awareness”.

And it also deals with brand image, strengths and preferences of awareness.
It covers the various existing Maruti brands namely 800, Zen, Alto, and
Swift. And only this third chapter also gives what are the advantages to the
seller and buyer by this Brand Awareness. And Nine Strengthens for Brand
Awareness and Preferences.

In this chapter interpretation and analysis part. Containing all the data
is analyzed and also represented in graphical method.

The Fourth Chapter deals with the summary of the topic. It gives
brief conclusion of the above three chapters. It also includes summary,
findings and suggestions, which give the entire idea of the topic studied at a
glance.

FINDINGS & CONCLUSION

The following details can be inferred after analysis with a simple size
of 100, which included customers, by questionnaire method to find out the
brand awareness towards Zen with reference to MARUTI.
1. Most of the customers relating to Maruti belong to the category of
employees as they occupy 30% of the entire customers. The next to
them industrialists will come as they occupy 24% of the customers.
2. Most of the customers have bought the car 2 years back.
3. The promotional strategy of Maruti is advertisements of which
electronic media and by press is playing a vital role.
4. Out of the models of Maruti the most popular brand is Zen because it
is possessed by 45% of the customers.
5. Most of the customers are aware of educational programs that are
being conducted by Maruti to the maintenance of the car.
6. Though the customers are having good awareness levels regarding the
programs being conducted by Maruti they are not attending the
programs because of various reasons.
7. The customers find some problems regarding the mileage of Zen
while comparing with the remaining models.

SUGGESTIONS

• Sri Varun Motors Pvt. Ltd. may maintain the stock of spares of all
brands of Maruti Four Wheelers so that it does not cause any
inconvenience to the Customers.
 • The charges for servicing the Four Wheelers may be slightly
reduced
• Some of the people are facing problems with mileage which should
be rectified
• As a promotional measure of Sri Varun Motors Pvt. Ltd. may
increase free services camps. This will increase Customer’s
loyalty.
• A few more service stations smaller in size may be set up in areas
where there is more demand which will satisfy more customers of
all areas.
• As per the study after sales service, cleaning and servicing vehicles
should be given importance and improved.
• Care should be taken to see that delivery of new cars as well as
serviced car should be in time.
• Customers are expecting some complaints during the delivery of
car. Hence, such items may be given to improve to Customers
Satisfaction.

QUESTIONNAIRE
GAYATRI COLLEGE FOR P.G COURCES
A PROJECT SURVEY ON CUSTOMER RELATIONSHIP MANAGEMENT IN
VARUN MOTORS PVT LTD
01. Occupation?
A) Business B) Profession C) Employee D) student
02. What is the model purchased by you?
A) Alto lxi B) WagonR C) Swift D) Maruti 800
03. How long do you using the car?
A) Before 1year B) Before 2year C) before 3 year D) Till now
04. Who influenced you to purchase a car?
A) Adds B) Sales person C) Friends D) some others
05. How is their complaints handling?
A) Excellent B) Good C) Average D) Poor
06. How is VARUN MOTORS delivery system?
A) Excellent B) Good C) Average D) Poor
07. Your overall opinion on the VARUN MOTORS service people?
A) Excellent B) Good C) Average D) Poor
08. How is their response towards you entering in to the office?
A) Excellent B) Good C) Average D) Poor
09. What is overall satisfaction level with VARUN MOTORS people?
A) Excellent B) Good C) Average D) Poor
10. How is their lounge facility?
A) Excellent B) Good C) Average D) Poor

11. What do you rate the below features?

DELIVERY POOR MODERATE SATISFACTORY EXCELLENT
SYSTEM
TRANSACTION
REPAIRABILITY

SPARE PARTS
TIME
BOUNDING
12. Was time loaner car provided to you?
A) Yes B) No
13. Explanation of work done & changers at the time delivery?
A) Excellent B) Good C) Average D) Poor

Suggestions if any,

NAME :

ADDRESS :

BIBLOGRAPHY

Text Books:
∗ Marketing Management - Philip Kotler

Web Links:
 ∗ http://www.marutiudyog.com
∗ http://www.bsmotoring.com
∗ http://www.owntheroad.com

Magzines
∗ Business World (Magazine)
∗ Information form Brochures
∗ Leading newspapers